Promoter investing Rs89 cr, whereas Rs266cr is debt
CL Jose
KOZHIKODE: The Rs355 crore Lulu Convention Center Calicut Private Ltd (LCPL) project is expected to commence operations on September 30, 2024 instead of the earlier planned December 28, 2023, according to a reliable report prepared by a rating agency.
The project faced delays in obtaining the site approval and building permit from Kozhikode Municipal Corporation and other necessary approvals from the authorities concerned necessitating the revision in date of commencement of commercial operations (DCCO) by about nine months.
(LCPL) or the Lulu Calicut Convention Centre project involves construction of a shopping mall in Calicut at a total cost of Rs355 crore to be funded by Rs266.25 crore of debt and Rs88.75 crore of promoter contribution. According to Care Ratings, the company has achieved 73 per cent financial progress as on December 31, 2023.
LCPL is part of the Emke/Lulu group promoted by Yusuf Ali and Ashraf Ali. Headquartered in Abu Dhabi, the group operates popular brands of retail chain stores including the Lulu chain of supermarkets, department stores, hypermarkets, and shopping malls.
As is known to all, the Lulu group operates more than 250 Lulu stores and 20 shopping malls across the Gulf Cooperation Council (GCC), Egypt and India. Though only Rs88.75 crore is envisaged to be invested by the promoters in the Convention Centre project, as on December 31, 2023, the promoters have already contributed Rs218.01 crore towards funding the project, which is way far more than the estimated amount of Rs88.75 crore.
76 pc space earmarked for Lulu outlets
As of December 31, 2023, the debt funding has reached only up to Rs41.46 crore out of the total cost of Rs259.47 crore incurred so far towards the project. However, as per the arrangements made between the promoters and bankers, the additional promoter’s contribution is likely to be reimbursed from the bank debt.
LCPL project involves construction of a shopping mall having a leasable area of 1.97 lakh square feet (lsf). The management has earmarked 76 per cent of the area (1.50 lsf) for Lulu’s own retail outlets, namely, Lulu Hypermarket, Lulu Connect and Lulu Fashion, which is expected to account for around 95 per cent of LCPL’s revenues once the asset becomes operational. The remaining 24 per cent of the area (0.47 lsf) will be leased to outside tenants.
